Are You Losing Out To Your Competitors Adverts?
Running a Google Ads campaign can be a hugely profitable experience. After all, the stats from Google in 2019 suggested that the average advertiser enjoyed an 8:1 ROI.
Imagine that, 8 dollars in revenue for every 1 dollar spent. You have to be happy with those kinds of numbers!
What about if you are one of the advertisers who doesn’t seem to get that kind of return?
It could be that your competitors steal a march on you. No matter how hard you try.
If that’s the case then this blog is for you. Read on as we cover a number of reasons why you could be losing out to your competitors' adverts.
Position, Position, Position
Before we dive into the ways to maximise your campaign it is important to understand what you should be trying to achieve.
In most cases as an advertiser you will want to get your ads clicked on. This might sound strange at first, but there could be reasons for just showing your ads if you were looking for brand awareness.
However, as stated, we are going to look at the average advertiser. So, getting clicks means you need to be somewhere close to the top of the page.
In real terms this means in one of the 4 positions. Failing to be here means the best you can hope for is a position at the bottom of the page. This might be okay for a search term with thousands of daily searchers, but in most cases it just won't get the right volume of clicks.
So, what can you do about grabbing one of these all-important top 4 spots?
Sadly, way too many advertisers turn to increasing their CPC when they lose ground to their competitors.
It's Not Always About The CPC
Of course, when you want to out-muscle the competition, you could always turn up your budget. That's right, sling more money (and profit) at Google and out-spend the other websites in your area.
However, the smart money will start to look at some of the other ways of improving your ad positions.
The key takeaway is that you don’t have to immediately up your spending. There are other ways you can ensure your ad performs well.
Ad Quality Score
Putting the CPC to one side there are other ways to influence where your ad shows up.
Remember, your goal is to occupy one of the top 4 slots in the search results. This will always provide you with a stronger click-through rate (CTR) and ultimately a better return on your investment (ROI).
This is where we focus on your ad quality score.
This is a rating given by Google for each search term. The target is to achieve a QS of 10 for each given search term.
There are just three components that go into the collective QS score and these are:
- Ad Quality (relevant)
- Landing Page Experience
- Estimated Click-Through Rate
But why is Ad Quality score so important?
Google decides where your ad is positioned based upon your ad rank. It’s not purely based on how much you decide to bid.
But (I hear you start to ask), I have a maximum CPC set. So, why does it matter what my ad rank is?
Okay, here’s the thing.
Your [Ad Rank] is your [Maximum CPC] x [Your Quality Score]
So, if a competitor has a higher quality score than you they might well have a higher ad rank, even when paying a lower CPC.
It's quite a complicated topic, likely to be worthy of a blog post in its own right at a later stage.
Ad Quality (Relevance)
We know there is a limit on the number of words that you can put in your ads. This makes writing great ads an ongoing challenge.
However, it’s important that your ads stack up.
You need to ensure that your ad text is relevant to the search terms that you are bidding on. That way it will correlate with the searcher and hopefully get clicked on.
So if you are targeting “Men’s Polo Shirts” then it is sensible to make sure that this phrase shows in your ad, right in the headline 1 position.
You will have the opportunity to add in a key selling point and a call to action in the remainder of the space allowed for text ads. This is important because you want to try to stand out from your competitors.
This is a simplistic overview, but the general idea is to make your ad relevant.
This gets a bit complicated when you have other products that are similar to the men's polo shirt example. Let's say you also sell formal shirts and are advertising these.
A searcher might use the term, “men’s shirts”. Do your ads show them the polo shirt or your other ad for the formal shirts?
This is where you will need additional skills to ensure your campaigns and ad-groups function to provide the best user experience. More on this great topic in an upcoming blog post.
Landing Page Experience
Once you are satisfied that your ad relevance is as good as it can be you need to think about the landing page experience.
It might sound obvious but there are still advertisers who deliver visitors to the home page of their website. They do this even when there are more relevant pages that could be shown.
This is just plain crazy!
Think about it. You pay for a visitor to come to your site and then decide to take them to a page that they have to navigate away from, just to find what they are looking for.
Each ad group should have its own dedicated landing page. This way you have the opportunity to deliver the best possible experience for your visitors.
Remember our men’s shirt example? If your visitors are clicking on formal shirts, then take them to this page. Its what they are looking for!
Your landing pages should load quickly too. No one likes a slow webpage. Less so people that are actually trying to buy something.
Keep your landing page clear and concise. The easier it is for the visitor to understand it and take action the better things will be. It's worth thinking the first time you visit a website. Do you instantly know what to do? Or is it better when you are guided in the right direction?
Google's words on this is that your landing page experiences is the measurement of how useful and relevant your page is to the visitor that clicks on your ad copy.
Expected Click-Through Rate
The third and final aspect of the Ad Quality score is the anticipated CTR.
It can be quite tricky to get your head around this part. Many advertisers still don’t have a firm grasp of this figure.
In reality, your expected CTR is Google’s calculation of how likely your ad will be clicked on when shown. Ad position and indeed any extensions you might be using are excluded from the formula that works this out.
The score is based upon the previous performance of ads that you have run.
Losing Out To Your Competitors Adverts - The Wrap Up
No one wants to come second or third to the competition, do they?
Having read this blog post you now have ammunition (other than purely spending more money).
If you are looking for a reputable agency to maxmise your ROI then The Google Ads Center is a name you can trust.
Talk to us today and find out how we can help you to stay competitive, without crushing your budget.